Bad Credit Loan

There are so many bad credit loan lenders available today competing for your business that you may have the option of picking and choosing one, compared to the past when you had to meet the lender's reqirements for a bad credit loan. Bad credit lenders today will work with you as best they can to help you with your needs. Many other people are in your same situation and thought there were not many options available. This can be true in some respect, since many banks only deal with people who have "Excellent" credit. But bad credit loan lenders are willing to give bad credit loans. You may want to read about Subprime Loans.

A * mortgage broker may be a good place to start your inquiries if you have bad credit. Most mortgage brokers have access to hundreds of * mortgage lenders specializing in different areas. There are lenders who work with bad credit loans and they can help give you great advice to help ensure your financial security. Be careful and only deal with * credible mortgage brokers. Some mortgage brokers try to charge excessive * closing costs and * points. But you can find some brokers who will do whatever they can to help you.

According to Shirley Rooker, director of WTOP radio's Call For Action for the Federal Trade Commission, January 2002: "No matter what, a poor credit history can't be erased...but there are some things you can do. Under the Fair Credit Reporting Act, you can question an item in your credit file and your complaint must be investigated. However, the negative information will be removed only if an investigation determines it's incorrect. A credit repair company, no matters what it claims, cannot compel the credit bureau to remove negative information from your file, if that information is accurate."

Shirley Rooker also says not to pay large sums of money to any "credit repair company" who claims they will work with your lenders to consolidate your debts, or reduce the size of your monthly payments. If you have bad credit, and would like to get counseling, you can contact the Federal Trade Commission for referral to non-profit counseling services that provide free or low cost help. 1-877-FTC-HELP

Beware of companies or services that promise they can fix credit reports quickly. They can be fraudulent and expensive. Getting out of debt will take time, patience, and sacrifice. You may want to read Credit Repair - Scam Artists - Be Aware

Glossary For This Page
(In Alphabetical Order)

* Closing Costs
The costs to complete a real estate transaction. These costs are in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. These costs generally range between 2% - 7% of the property value. Ask a lender or real estate professional for a complete list of closing cost items.

* Credible
Capable of being believed, plausible, worthy of confidence, reliable.

*Mortgage Broker
A person or company engaged in the arrangement of mortgages for buyers. The broker is usually paid a commission by the lender.

* Mortgage Lender
The lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing.

* Points
1 percent of the amount of the mortgage loan. For example, if a loan is made for 50,000 dollars, one point equals 500 dollars.

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